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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4066 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 4066

   To improve Federal technology procurement, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2024

 Mr. Peters (for himself and Mr. Cruz) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
   To improve Federal technology procurement, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Improvement in Technology 
Procurement Act'' or the ``FIT Procurement Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Government Accountability Office (GAO) has 
        conducted a trend analysis of Government-wide contracting for 
        each of the last several fiscal years. These analyses show that 
        the Federal dollars obligated through contracts has been 
        steadily increasing.
            (2) Contract spending accounts for more than 80 percent of 
        the Federal information technology budget.
            (3) Spending on information security, software, cloud 
        computing, data center solutions and services, software as a 
        service, and artificial intelligence technologies is projected 
        to grow significantly.
            (4) Rapid technological developments and increased 
        Government demand create a need for a Federal acquisition 
        workforce with an understanding of technology and related 
        procurement considerations.
            (5) Federal agencies are challenged to shorten the 
        procurement cycle to meet agency technology requirements. 
        Technology acquired through procurements that take years from 
        requirements development to implementation may be obsolete by 
        the time it is fielded.
            (6) While Federal contracting dollars are increasing year 
        over year, and the number of new business applications filed is 
        at an all-time high, the number of Federal contractors 
        receiving contract awards is shrinking. This trend could impair 
        the Federal Government's access to innovative commercial 
        technologies.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Acquisition workforce.--The term ``acquisition 
        workforce'' means employees of an executive agency who are 
        responsible for procurement, contracting, program or project 
        management that involves the performance of acquisition-related 
        functions, or others as designated by the Chief Acquisition 
        Officer, senior procurement executive, or head of the 
        contracting activity.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator for Federal Procurement Policy.
            (3) Cross-functional.--The term ``cross-functional'' means 
        a structure in which individuals with different functional 
        expertise or from different areas of an organization work 
        together as a team.
            (4) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (5) Experiential learning.--The term ``experiential 
        learning'' means on-the-job experiences or simulations that 
        serve to enhance workforce professional skills.
            (6) Information and communications technology.--The term 
        ``information and communications technology''--
                    (A) has the meaning given the term in section 4713 
                of title 41, United States Code; and
                    (B) includes information and communications 
                technologies covered by definitions contained in the 
                Federal Acquisition Regulation, including definitions 
                added after the date of the enactment of this Act by 
                the Federal Acquisition Regulatory Council pursuant to 
                notice and comment.
            (7) Relevant committees of congress.--The term ``relevant 
        committees of Congress'' means the Committee on Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committee on Oversight and Accountability of the House of 
        Representatives.

SEC. 4. ACQUISITION WORKFORCE.

    (a) Experiential Learning.--Not later than 18 months after the date 
of the enactment of this Act, the Federal Acquisition Institute shall 
incorporate experiential learning into the Federal Credentials Program, 
the Federal Acquisition Certification-Contracting Officer's 
Representative (FAC-COR) Program, and the Federal Acquisition 
Certification for Program and Project Managers (FAC-P/PM) Program, or 
any successor programs.
    (b) Training on Information and Communications Technology 
Acquisition.--
            (1) In general.--Not later than 18 months after the date of 
        the enactment of this Act, the Federal Acquisition Institute, 
        in coordination with the Administrator, the Administrator of 
        General Services, the Federal Chief Information Officer, the 
        Chief Information Officers Council, and the United States 
        Digital Service, and in consultation with others as determined 
        to be appropriate by the Director of the Federal Acquisition 
        Institute, shall develop and implement or otherwise provide a 
        cross-functional information and communications technology 
        acquisition training program for acquisition workforce members 
        involved in acquiring information and communications 
        technology. The training shall--
                    (A) include learning objectives related to market 
                research, communicating with industry and industry 
                perspectives on the procurement process, including how 
                investment decisions are impacted by Government 
                communication and engagement, developing requirements, 
                acquisition planning, best practices for developing and 
                executing outcome-based contracts, and source selection 
                strategy, evaluating proposals, and awarding and 
                administering contracts for information and 
                communications technology;
                    (B) include learning objectives that provide a 
                basic understanding of key technologies Federal 
                agencies need, such as cloud computing, artificial 
                intelligence and artificial intelligence-enabled 
                applications, and cybersecurity solutions;
                    (C) include learning objectives that encourage the 
                use of commercial or commercially available off-the-
                shelf (COTS) technologies to the greatest extent 
                practicable;
                    (D) include case studies of lessons learned from 
                Federal information and communications technology 
                procurements and contracts, and related matters as 
                deemed relevant by the Director of the Federal 
                Acquisition Institute;
                    (E) include experiential learning opportunities, 
                and opportunities to practice acquisition teaming 
                involving collaboration of team members with varied 
                relevant domain expertise to complete acquisition-
                related tasks, including tasks with accelerated 
                timelines;
                    (F) include continuous learning recommendations and 
                resources to keep the skills of acquisition workforce 
                members current, including tools that help adopt or 
                adapt the use of innovative acquisition practices or 
                other flexible business practices commonly used in 
                commercial buys;
                    (G) be made available to acquisition workforce 
                members designated by a Chief Acquisition Officer, 
                senior procurement executive, or head of the 
                contracting activity to participate in the training 
                program; and
                    (H) inform executive agencies about streamlined and 
                alternative procurement methods for procurement of 
                information and communications technology, including--
                            (i) simplified procedures for certain 
                        commercial products and commercial services in 
                        accordance with subpart 13.5 of the Federal 
                        Acquisition Regulation, prize competitions 
                        under the America COMPETES Reauthorization Act 
                        of 2010 (Public Law 111-358), commercial 
                        solutions opening authorities as provided in 
                        section 5 of this Act or under separate 
                        authority, competitive programs that encourage 
                        businesses to engage in Federal research or 
                        research and development with the potential for 
                        commercialization, and joint venture 
                        partnerships;
                            (ii) innovative procurement techniques 
                        designed to streamline the procurement process 
                        and lower barriers to entry, such as use of 
                        oral presentations and product demonstrations 
                        instead of lengthy written proposals, 
                        appropriately leveraging performance and 
                        outcomes-based contracting, and other 
                        techniques discussed on the Periodic Table of 
                        Acquisition Innovations or other similar 
                        successor knowledge management portals; and
                            (iii) information on appropriate use, 
                        examples and templates, and any other 
                        information determined relevant by the 
                        Administrator to assist contracting officers 
                        and other members of the acquisition workforce 
                        in using the procedures described in clauses 
                        (i) and (ii).
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Director of the Federal Acquisition 
        Institute shall provide to the relevant committees of Congress, 
        the Chief Acquisition Officers Council, and the Chief 
        Information Officers Council--
                    (A) a report on the Director's progress in 
                developing and implementing or otherwise providing the 
                information and communications technology acquisition 
                training described in paragraph (1); and
                    (B) a list of any congressionally mandated 
                acquisition training that the Director determines to be 
                outdated or no longer necessary for other reasons.
            (3) Duration.--The training program shall be updated as 
        appropriate as technology advances, but at least every 2 years 
        after implementation, and offered for a minimum of 7 years 
        following the date of implementation of the training program.
    (c) Acquisition Workforce Training Fund.--
            (1) Finding.--Congress finds that the Acquisition Workforce 
        Training Fund should be utilized in order to ensure that the 
        Federal acquisition workforce--
                    (A) continues to adapt to fundamental changes in 
                Federal Government acquisition of property and 
                services; and
                    (B) acquires new skills and knowledge to enable it 
                to contribute effectively in the changing environment 
                of the 21st century.
            (2) Increased credits to fund.--Section 1703(i)(3) of title 
        41, United States Code, is amended by striking ``Five percent'' 
        and inserting ``Seven and a half percent''.
    (d) Harmonization of Acquisition Workforce Training Requirements.--
The responsibility for the requirement in subsection (b)(1) of section 
2 of the AI Training Act (Public Law 117-207; 41 U.S.C. 1703 note) is 
reassigned from the Director of the Office of Management and Budget to 
the Administrator of General Services.

SEC. 5. INNOVATIVE PROCUREMENT METHODS.

    (a) Expansion of Commercial Solutions Opening Authority.--Section 
880 of the National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114-328; 41 U.S.C. 3301 note) is amended--
            (1) in the section heading, by striking ``pilot programs 
        for authority to acquire innovative commercial products'' and 
        inserting ``programs for authority to acquire innovative 
        commercial products and commercial services'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by inserting ``and commercial 
                services'' after ``commercial products'';
                    (B) in paragraph (2), by adding at the end the 
                following new subparagraph:
                    ``(C) The head of an executive agency approved for 
                the program, on a temporary or permanent basis, by the 
                Director of the Office of Management and Budget.''; and
                    (C) in paragraph (3), by adding at the end the 
                following new subparagraph:
                    ``(C) An executive agency approved for the program 
                by the Director of the Office of Management and 
                Budget.'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Guidance.--The head of an agency shall issue guidance for the 
implementation of the program under this section within that agency. 
Such guidance shall be issued in consultation with the Office of 
Management and Budget and shall be posted for access by the public. The 
guidance shall also include requirements for each general solicitation 
to be posted publicly through a means that provides access to the 
notice of general solicitation through the System for Award Management 
or subsequent Government-wide point of entry, with classified 
solicitations posted to the appropriate Government portal.'';
            (4) by amending subsection (e) to read as follows:
    ``(e) Reporting and Data Collection.--The head of an agency shall 
report information on contracts made using procedures under this 
section to the Office of Management and Budget as determined by the 
Director of the Office of Management and Budget. The Administrator for 
Federal Procurement Policy shall collect and analyze data on the use of 
the authority under this section for the purposes of--
            ``(1) developing and sharing best practices;
            ``(2) gathering information on the implementation of the 
        authority and related policy issues; and
            ``(3) informing the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Accountability of the House of Representatives on 
        the use of the authority.'';
            (5) in subsection (f)--
                    (A) in paragraph (1)(B), by striking ``; and'' and 
                inserting a semicolon;
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) the term `executive agency' has the meaning given the 
        term in section 133 of title 41, United States Code; and'';
            (6) by striking subsection (g); and
            (7) by striking ``pilot'' each place it appears.
    (b) Clerical Amendment.--The table of contents in section 2(b) of 
such Act and the table of contents preceding subtitle A of title VIII 
of such Act are each amended by striking the item relating to section 
880 and inserting the following new item:

``Sec. 880. Programs for authority to acquire innovative commercial 
                            products, commercial technologies, and 
                            commercial services using general 
                            solicitation competitive procedures.''.
    (c) Increase in Simplified Acquisition Threshold.--
            (1) Finding.--Congress finds that the threshold under which 
        agencies may use simplified acquisition procedures to reduce 
        costs, improve opportunities for qualified businesses, promote 
        efficiency and economy, and avoid unnecessary burdens for 
        agencies and their contractors should be updated.
            (2) Amendment.--
                    (A) In general.--Section 134 of title 41, United 
                States Code, is amended by striking ``$250,000'' and 
                inserting ``$500,000''.
                    (B) Authority to apply provisions below the 
                threshold.--The Federal Acquisition Regulatory Council 
                may apply a provision that would not otherwise be 
                applicable below the threshold as amended by 
                subparagraph (A) upon a written determination that it 
                would not be in the best interest of the Federal 
                Government to exempt contracts and subcontracts in 
                amounts not greater than such amended threshold from 
                such provision, such as for national security reasons.
    (d) Multiple Award Schedule Program Competitive Procedures.--
            (1) Finding.--Congress finds that the competition standard 
        established by the Administrator of General Services for the 
        multiple award schedule program of the General Services 
        Administration should be updated and made consistent with the 
        competition standard for other procurement methods, such as 
        simplified acquisitions and negotiated procurements. The term 
        ``best value'' is defined in the Federal Acquisition Regulation 
        as meaning the expected outcome of an acquisition that, in the 
        Government's estimation, provides the greatest overall benefit 
        in response to the requirement.
            (2) Amendments.--
                    (A) Civilian contracts.--Section 152(3)(B) of title 
                41, United States Code, is amended to read as follows:
                    ``(B) contracts and orders under such program 
                result in the award of best value products and services 
                for the Federal Government;''.
                    (B) Defense contracts.--Section 3012(3)(B) of title 
                10, United States Code, is amended to read as follows:
                    ``(B) contracts and orders under such program 
                result in the award of best value products and services 
                for the Federal Government;''.
            (3) Guidance.--The Federal Acquisition Regulatory Council 
        shall provide guidance to Federal agencies on appropriate use 
        of the best value competition standard for the multiple award 
        schedule program as part of the implementing regulations 
        promulgated in connection with the amendments made by paragraph 
        (2).
    (e) Advances for Commercial Technology Subscriptions and Tenancy.--
            (1) Finding.--Congress finds that the authority to make 
        advance payments should be updated for purposes of enabling the 
        most cost-effective acquisition of cloud computing, data center 
        solutions and services, and other information and 
        communications technology acquired on a subscription, 
        reservation, or tenancy basis.
            (2) Authority to pay advances.--Section 3324(d) of title 
        31, United States Code, is amended--
                    (A) in paragraph (1)(C), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (2)--
                            (i) by inserting ``or commercially 
                        available content'' after ``publication''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) charges for information and communications technology 
        subscriptions, reservations, or tenancy, which means the 
        sharing of computing resources in a private or public 
        environment, including cloud environments, for which the 
        ordering agency defines appropriate access and security 
        standards.''.

SEC. 6. INCREASING COMPETITION IN FEDERAL CONTRACTING.

    (a) Use of Past Performance.--Not later than 1 year after the date 
of the enactment of this Act, the Administrator shall issue guidance, 
including examples and templates where appropriate, on--
            (1) when a wider range of projects, such as commercial or 
        non-government, as well as Government projects, should be 
        accepted as relevant past performance, in order to have 
        increased competition among eligible firms with capability to 
        perform a requirement, such as a requirement without much 
        precedent;
            (2) a means by which an agency may validate non-government 
        past performance references, such as by requiring an official 
        of an entity providing past performance references to attest to 
        their authenticity and by providing verifiable contact 
        information for the references; and
            (3) use of alternative evaluation methods other than past 
        performance that may be appropriate for a requirement without 
        much precedent, such as demonstrations and testing of 
        technologies as part of the proposal process.
    (b) Ensuring a Capable Federal Vendor Base.--
            (1) Working group.--Not later than 90 days after the date 
        of the enactment of this Act, the Administrator shall convene a 
        working group or an appropriate existing body (in this section 
        referred to as the ``working group''), to make recommendations 
        to address the Federal Government's shrinking vendor base and 
        related matters.
            (2) Membership.--The working group convened under paragraph 
        (1) shall be chaired by the Administrator or a designee of the 
        Administrator and include, at a minimum, representatives from 
        the following departments and agencies:
                    (A) The General Services Administration.
                    (B) The Department of Homeland Security.
                    (C) The Department of Commerce.
                    (D) The Department of Defense.
                    (E) The Department of Health and Human Services.
                    (F) The Small Business Administration.
                    (G) Any other agencies or organizations as 
                determined appropriate by the Administrator.
            (3) Consultation.--The working group shall obtain input 
        from the public, including from the APEX Accelerators program 
        (formerly known as Procurement Technical Assistance Center 
        (PTAC) network) and other contractor representatives, to 
        identify Federal procurement policies and regulations that are 
        obsolete, overly burdensome or restrictive, not adequately 
        harmonized, or otherwise serve to create barriers to 
        participation in Federal contracting or unnecessarily increase 
        bid and proposal costs.
            (4) Examination of actions.--The working group shall 
        consider the input obtained under paragraph (3) and any other 
        information determined to be relevant by the working group to 
        identify legislative, regulatory, and other actions to remove 
        barriers to qualified vendors in the procurement process, in 
        order to build the Federal vendor base, increase competition, 
        and address related matters.
            (5) Implementation.--Not later than 2 years after the date 
        of the enactment of this Act, the Administrator shall, in 
        consultation with the Federal Acquisition Regulatory Council, 
        the Chief Acquisition Officers Council, the working group, and 
        other agencies as appropriate, implement the regulatory and 
        other non-legislative actions identified under paragraph (4), 
        as determined necessary by the Administrator, to remove 
        barriers to entry for those seeking to participate in Federal 
        Government procurement.
            (6) Briefing.--Not later than 2 years after the date of the 
        enactment of this Act, the Administrator shall brief the 
        relevant committees of Congress on the legislative actions 
        identified under paragraph (4), and the actions implemented 
        under paragraph (5).

SEC. 7. INCENTIVIZING EMPLOYEE STOCK OWNERSHIP PLANS FOR BUSINESS 
              GROWTH.

    (a) Pilot Program To Use Noncompetitive Procedures for Certain 
Follow-On Contracts to Qualified Businesses Wholly-Owned Through an 
Employee Stock Ownership Plan (ESOP).--
            (1) Establishment.--The Administrator may expand the pilot 
        program authorized by section 874 of the National Defense 
        Authorization Act for Fiscal Year 2022 (Public Law 117-81; 10 
        U.S.C. 3204 note) for Government-wide use, including by 
        coordinating as necessary with the Federal Acquisition 
        Regulatory Council to make related amendments to the Federal 
        Acquisition Regulation.
            (2) Follow-on contracts.--Notwithstanding the requirements 
        of section 3301 of title 41, United States Code, for purposes 
        of carrying out a Government-wide ESOP pilot program 
        established under paragraph (1), the products or services to be 
        procured by an executive agency under a follow-on contract with 
        a qualified business wholly-owned through an ESOP for the 
        continued development, production, or provision of products or 
        services that are the same as or substantially similar to the 
        products or services procured under a prior contract may be 
        procured through procedures other than competitive procedures 
        if the performance of the qualified business on the prior 
        contract was rated as satisfactory (or the equivalent) or 
        better.
            (3) Limitation.--A qualified business wholly-owned through 
        an ESOP may have a single opportunity for award of a sole-
        source follow-on contract under this subsection, unless the 
        senior procurement executive of the executive agency awarding 
        the contract approves a waiver of such limitation.
    (b) Verification and Reporting of Qualified Businesses Wholly-Owned 
Through an Employee Stock Ownership Plan.--Under a pilot program 
established under this section, the Administrator shall establish 
procedures--
            (1) for businesses to verify status as a qualified business 
        wholly-owned through an ESOP for the purposes of this section 
        by using existing Federal reporting mechanisms;
            (2) for a qualified businesses wholly-owned through an ESOP 
        to certify that not more than 50 percent of the amount paid 
        under the contract will be expended on subcontracts, including 
        similarly situated ESOPs if determined appropriate by the 
        Administrator, subject to such necessary and reasonable waivers 
        as the implementing guidance or regulations may prescribe; and
            (3) to record and provide to relevant committees of 
        Congress upon request information on each follow-on contract 
        awarded under authority of this subsection, including details 
        relevant to the nature of such contract and the qualified 
        business wholly-owned through an ESOP that received the 
        contract.
    (c) Sunset.--A pilot program established under this section shall 
expire on the date that is 5 years after the date of the enactment of 
this Act.
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